Prestige Brands Holdings, Inc. (PBH), Johnson & Johnson (JNJ): The Quest for a Hidden Bargain, Not Over Yet!

Colgate-Palmolive is one of the largest consumer products companies in the world, with such brands as Ajax, Colgate, Irish Spring, Softsoap, Speed Stick, and Toms of Maine. Although it is the most expensive of the three at 21 times forward earnings, it also has the best projected growth, at almost 9% going forward, according to consensus estimates. Colgate-Palmolive Company (NYSE:CL) also pays a decent dividend of 2.25%, which has been raised every year, and Prestige does not have a dividend.

Conclusion

Unfortunately, Prestige Brands Holdings, Inc. (NYSE:PBH) is not the great under the radar bargain I was hoping to find. However, now that the company is on my radar, it may be worth monitoring, especially during and after next week’s earnings release. Anything less than stellar numbers could cause a serious pullback, and I would become a buyer if it were closer to its historical valuation level. For now, buy Johnson & Johnson (NYSE:JNJ) or Colgate-Palmolive.

The article The Quest for a Hidden Bargain: Not Over Yet! originally appeared on Fool.com and is written by Matthew Frankel.

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